Royal Bank of Canada outsourcing fiasco or iGate-gate


Mark Blinch /REUTERS

Well what a surprise, a bank trying to make yet more money even if that means outsourcing  jobs. But what’s worse, is they want the soon to be former employees to stick around and train their replacements. Classy move!

According to CBC, the Royal Bank of Canada’s annual profit in 2012 was a record-setting $7.5 billion, including $1.9 billion of net earnings in the fourth quarter alone. That’s up 17 percent from the previous year. But of course that’s not enough; it’s never enough because in true bank form there’s always more you can squeeze out of people to pad your bottom line. Banks are places where they have billions of dollars yet still chain the 50 cent pens to the desks!

Banks are places where they have billions of dollars yet still chain the 50 cent pens to the desks!

They say a savings account is a way of lending a bank money that it then uses to make more money and pays you interest. That’s fine, but something is wrong; when the situation is reversed and I go to a bank for a loan, the bank tells me what the interest rate will be, yet when I open a savings account, effectively lending the bank money, they also tell me the rate they’ll pay. Don’t I have any say? Of course not, it’s a bank!

I have to wonder if (the government would) be so vigilant if they didn’t feel Justin Trudeau breathing down their necks

Now in an effort to cut costs (or increase profits) RBC has reportedly decided to outsource some of its brokerage back office jobs. A company called iGate, was contracted to provide certain technology services to RBC affecting 45 current employees in Toronto. It seems iGate is looking to hire temporary foreign workers to fill the positions, but not until the incumbents train the newcomers. Huh?

JustinT
Justin Trudeau

This has created quite a social media furor and has prompted the government to look into the matter. Call me a skeptic if you will, but the Harper Conservatives are no friend of the little guy and I have to wonder if they’d be so vigilant if they didn’t feel Justin Trudeau breathing down their necks. (Recent polls indicate Trudeau would be elected Prime Minister if an election were held now.) In a recent Maclean’s article University of Toronto immigration law professor Audrey Macklin stated:

 

“The Canadian government has been aggressively encouraging employers to use temporary foreign workers. In effect, the government of Canada subsidizes employers to the tune of five to 15 per cent of labour costs on the backs of temporary foreign workers and at the expense of Canadians”

I believe all banks operate the same way, and the Royal Bank just got caught.  RBC will take the heat, but all Canadian banks need to take a look in the mirror. Then again, being banks they’d have no problem with what they saw. Maybe it’s time for the government to take a long, hard look at the banking industry in Canada.

Me DCMontreal – Deegan Charles Stubbs – is a Montreal writer born and raised who likes to establish balance and juxtapositions; a bit of this and a bit of that, a dash of Yin and a soupçon of Yang, some Peaks and an occasional Frean and maybe a bit of a sting in the tail! Please follow DC on Twitter @DCMontreal and on Facebook, and add him on Google+
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